News Releases

Sierra Pacific Seeks OPUC Approval of PGE Acquisition

Jan 17, 2000

January 18, 2000
Sierra Pacific Resources
Contact: Rich Atkinson(investor relations)/ Karl Walquist(media relations)
Phone: 775-834-4358/775-834-3891

For Immediate Release

SALEM, Ore. - Sierra Pacific Resources (NYSE: SRP) filed an application today with the Oregon Public Utility Commission (OPUC) for approval to purchase Portland General Electric (PGE) from Enron Corp. The application proposes the continuation and expansion of rate credits for PGE customers.

In the filing, Sierra Pacific states it will extend a $9 million annual credit for 18 months amounting to $13.5 million in benefits to PGE customers. Sierra Pacific is proposing these benefits in addition to paying all the remaining credits due PGE customers as agreed to by Enron when it acquired PGE in 1997.

"Most importantly, PGE customers will receive the same high level of reliable, high quality service and utility operations," said Malyn Malquist, president and chief operating officer of Sierra Pacific."Sierra Pacific, like PGE, is focused on customer satisfaction.

"PGE fits well with our vision to be a premier transmission, distribution and energy services company in the West," Malquist added."Further, we recognize that our business success is closely linked to our performance as good corporate citizens, contributing to the health, vitality and quality of life in the communities we serve."

In November 1999, Sierra Pacific announced the proposal to acquire PGE from Enron for $2.1 billion. PGE will join Sierra Pacific Power Company and Nevada Power Company as a subsidiary of Sierra Pacific Resources. The acquisition brings together three utilities serving the most rapidly growing metropolitan areas in the western United States.

PGE will continue to have a local headquarters in Portland. PGE President Peggy Fowler has been asked to continue leading the company.

"We're looking forward to becoming a part of a company that has the same long history of being customer focused and providing superior service," Fowler said."As we participate in the process of implementing electric restructuring in Oregon, our customers will also benefit from Sierra Pacific's restructuring experience in other states."

In the application, Sierra Pacific said that the combination with PGE will create opportunities for cost savings as a result of reduced administrative and overhead costs, and greater efficiencies in operations, purchasing and business processes. This will help the companies to focus on their goal of providing high quality, responsive service to customers.

Sierra Pacific is asking the Commission to set a schedule for considering the transaction that will lead to a decision by June. The company expects to close the transaction by the fall of 2000.

The transaction is also subject to approval by the Securities and Exchange Commission, the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission.

Sierra Pacific Resources is a utility holding company headquartered in Reno, Nev., whose principal subsidiaries are Sierra Pacific Power Company and Nevada Power Company. Sierra Pacific serves about 1 million electric, natural gas and water customers in Nevada and northern California.

PGE serves more than 700,000 residential, commercial and industrial electric customers in northwest Oregon. More information about Sierra Pacific and PGE is available on the Internet at and .